Are Investors Undervaluing MKS Instruments (MKSI) Right Now?

Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.One company to watch right now is MKS Instruments (MKSI). MKSI is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 15.49. This compares to its industry's average Forward P/E of 20.50. Over the past year, MKSI's Forward P/E has been as high as 26.54 and as low as 14.28, with a median of 21.29.We also note that MKSI holds a PEG ratio of 0.57. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. MKSI's PEG compares to its industry's average PEG of 1.02. Within the past year, MKSI's PEG has been as high as 3.96 and as low as 0.54, with a median of 3.03.Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. MKSI has a P/S ratio of 2.13. This compares to its industry's average P/S of 2.16.Finally, investors should note that MKSI has a P/CF ratio of 3.29. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 10.28. Within the past 12 months, MKSI's P/CF has been as high as 20.29 and as low as -5.53, with a median of 15.48.These figures are just a handful of the metrics value investors tend to look at, but they help show that MKS Instruments is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, MKSI feels like a great value stock at the moment.Free: 5 Stocks to Buy As Infrastructure Spending SoarsTrillions of dollars in Federal funds have been earmarked to repair and upgrade America’s infrastructure. In addition to roads and bridges, this flood of cash will pour into AI data centers, renewable energy sources and more.In, you’ll discover 5 surprising stocks positioned to profit the most from the spending spree that’s just getting started in this space.Download How to Profit from the Trillion-Dollar Infrastructure Boom absolutely free today.Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report MKS Instruments, Inc. (MKSI): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks